Google and its rivals are acquiring new weapons in the fight for the Cloud-computing market share.
With Thomas Curia as Chief Executive Officer of Cloud since 2019 in Oracle Corporation
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The unit is hitting a $ 142 billion box to make it more attractive to customers. Google University Communications Inc. and CME Group have been involved in equity contributions over the past year. Ink.,
Overcoming multiple years of commitment to cloud services of up to $ 1 billion or more.
The deal makes Google the most aggressive of the many big companies looking to land on Amazon.com Ink.,
Cloud Market Leader. Microsoft Corporation
He also used the cloud as part of a number of initiatives as part of agreements. And Oracle tried to acquire a large stake in Tick Talk last year as part of an agreement to use the Chinese-owned social media app – and announced this month that it has expanded its cloud business as planned. $ 28.3 Billion Purchases of Medical Records Company Serner Corporation
The new strategy has helped Google increase its market share in the huge and fast-growing industry that is key to its growth. Google now claims 6 percent of the cloud market, which is 1 percent higher than a year ago but still 41 percent lower than Amazon and 20 percent lower than Microsoft.
“Nobody wants to buy these customers, but if you are number 3 or 4, you have to be a creator,” said Holger Mለርller, a Constellation Research Ink analyst who specializes in enterprise technologies.
The investments highlight technology companies’ strong cash flows, making them more competitive than smaller competitors in cloud infrastructure services. Those companies could purchase the huge infrastructure investments needed to build multi-billion dollar data centers and cover the costs of moving their customers to their cloud systems – which explains why three companies control two-thirds of the market.
A spokesman for Google Cloud said the company had won a large number of customers, adding that investments were part of its strategy. “In some cases, Google pursues investments and partnerships in attractive growth areas, which is a common practice among many companies in the enterprise industry,” he said.
Fidel investors see Google Cloud as a promising place of growth and a great opportunity beyond the online advertising business, which accounts for 80% of sales. A.D. The cloud segment, which began financing 2020, is expected to grow faster than 2020 in the first nine months of 2021 and is expected to grow by 50% to $ 19.26 billion for the full year.
Those discoveries have cost the company a lot of money to develop infrastructure and expand its sales team. Google Cloud halved sales in January-September to $ 2.2 billion a year earlier.
Google deals cover clients in a variety of sizes and sectors. Over a period of more than a year, the future-exchange company CME Group has invested $ 1 billion; $ 450 million home security provider ADT Inc.
; And undisclosed sums in Spanish language media company Union and Health Technology startup Tempus Labs Inc. Everyone has signed a long-term cloud computing agreement with Google.
Former Google Cloud executives say Mr Kuryan has played a central role in promoting the investment strategy. Before coming to Oracle, Google gave priority to developing new technologies to attract customers from traditional sales. It has improved its approach by increasing sales staff and matching performance bonuses.
Microsoft has announced an investment and cloud agreement with Graph Holdings, a leading provider of food Ltd.
in 2018. Former Google Cloud executives say Mr Kuryan has come up with a similar strategy to find his rivals. The investments are designed to give companies another reason to choose Google over their competitors and to convince them that they are financially committed to developing technologies that will benefit their businesses.
Microsoft continues to invest in emerging startups to hit cloud partnerships, one of the biggest deals being the role of General Motors. Co.
Driver-free car start, Cruz. Under the terms of the agreement, Cruz will provide its own automotive services using the Microsoft Azure Cloud Computing platform.
While Microsoft was still in its infancy, Google participated in a $ 200 million investment package for Tempus, a Chicago-based company that uses Artificial Intelligence to improve patient care. As part of the 2020 investment, Google Tempus has significantly reduced the transition from Amazon to the cloud, according to a source familiar with the deal.
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According to the agreement, Tempus has agreed to spend at least $ 20 million on Google Cloud in its first year, which means that Google’s revenue from the deal could increase in a few years.
Tempus did not respond to requests for comment. Although Google Investments’ CEO is a separate enterprise negotiation cloud, Google is a true partner committed to growing the business.
The search company has come up with a broader approach to its partnership with ADT. A.D. In 2018, ADT chief operating officer Don Young said the company was looking to move some of its input data to the cloud. He met with Google representatives and proposed a deal to include a $ 450 million partnership between ADT and Google’s Nest smart-home business, as well as a $ 450 million investment in ADT beyond Cloud computing.
Mr. Young ADT kept some information on Google Cloud regardless of the investment, but the company has since increased its spending on Google cloud services.
“We were making a cloud deal, yes,” Mr Young said. But the real cloud deal we made? not sure.”
In a bid to move the trading system to Google Cloud, CME CEO Terry Duffy has invested in a key to the deal. “I was looking for a partner, not just a cloud provider,” Mr Duffy said in an interview.
“Equity investment is our commitment,” Mr Kuryan said at the time. Google says it has confirmed that it will select the best ones to support the CME team’s cloud efforts.
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– Alexander Osipovich contributed to this article.
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